Johannes Salim, CFA

Equity Bottom-Up

<ul><li><a href="https://www.smartkarma.com/entities/2806" target="_blank" data-smartkarma-citation="entities:2806:1">Hexindo Adiperkasa Tbk Pt (HEXA IJ)</a> trades at a super compelling 6.3x FY19 PE (ended in Mar) or 4.9x ex-net cash PE.</li><li>Its high operating leverage amid coal prices up-cycle provides both sales and margin upside.</li><li>Moreover, the company has strong management, evidenced by strong cash flow generations and high earnings quality.</li><li>We believe that HEXA (with US$188 mn market cap) is a hidden gem among Asia ex-Japan small caps.</li></ul>

Hexindo Adiperkasa Tbk Pt (HEXA IJ) trades at a super compelling 6.3x FY19 PE (ended in Mar) or 4.9x ex-net cash PE.Its high operating leverage amid coal prices up-cycle provides both sales and margin upside.Moreover, the company has strong management, evidenced by strong cash flow generations and high earnings quality.We believe that HEXA (with US$188 mn market cap) is a hidden gem among Asia ex-Japan small caps.

Hexindo Adiperkasa: A Hidden Gem at 4.9x Ex-Net Cash PE